CO2 shrugs off the Covid-19 slump
Future policy assumptions support the EU ETS after initial hit
European energy markets have been thrown into turmoil by the coronavirus pandemic, with prices for some commodities falling by more than 50pc as demand has plummeted during the enforced lockdown. A combination of housebound workers and a slowdown in commercial and industrial activity has also tipped countries into recession, blighting the economic outlook for the coming months and even years. But European carbon allowance markets are remaining robust, reflecting growing confidence that a long-term economic recovery will focus on low-carbon and sustainable policies. The sudden and sharp decline in economic activity since March did, admittedly, feed through to Europe’s emissions trading system
Also in this section
28 April 2026
Oil traders warning of $200/bl oil are wrong, and the market should be wary of proclamations that the impact of the oil shortage has only begun to be felt and a that a ‘harsh adjustment’ is coming—even for industrialised nations
28 April 2026
Restoring supply from Saudi Arabia, the UAE, Kuwait, Qatar, Bahrain and Iraq involves complexities far beyond simply adjusting operational controls
28 April 2026
Datacentres will guzzle power at a ferocious rate, but the impact on wider energy markets will be far more complex than previously thought
28 April 2026
The key energy player faces balancing regional routes, political complexities, and creating a clear strategic vision for energy security
